Key Terms 14 - The International Economy: Globalisation And International Trade Flashcards
Balance Of Payments
A record of all the currency flows into and out of a country in a particular time period.
Current Account
Measures all the currency flows into and out of a country in a particular time period in payment for exports and imports of goods and services, together with primary and secondary income flows (previously known as income flows and transfers).
Balance Of Primary Income
Inward primary income flows comprising both inward-income flowing into the economy in the current year generated by UK-owned capital assets located overseas, and outward primary income flows comprising income flowing out of the economy in the current year generated by overseas-owned capital assets located in the UK.
Balance Of Secondary Income
Current transfers, e.g. gifts of money, international aid and transfers between the UK and the EU, flowing into or out of the UK economy in a particular year.
Current Account Deficit
Currency outflows in the current account exceed the currency inflows.
Current Account Surplus
Currency inflows in the current account exceed the currency outflows.
Balance Of Trade In Goods
The part of the current account measuring payments for exports and imports of goods. The difference between the total value of exports and the total value of imports is sometimes called ‘the balance of visible trade’.
Balance Of Trade In Services
Part of the current account, the difference between the payments for the exports of services and the payments for the imports of services.
Export-Led Growth
In the short run, economic growth resulting from an increase in exports, which is one of the components of aggregate demand. In the long run, economic growth resulting from the growth and increased international competitiveness of exporting industries.
